Rise in Saudi Tourism Sector
Saudi Arabia’s tourism sector has recorded extraordinary +121% increase from pre-pandemic international tourism levels as recognized by the UNWTO Tourism Barometer, making the kingdom the fastest growing tourism destination in the G20. The substantial tourism recovery recognizes not only Saudi’s considerable investment in tourism, but also the country’s pioneering leadership in future-proofing its tourism sector. Saudi was swift in its response to the pandemic and rolled out vaccines to ensure high immunization rates quickly which accelerated the easing of restrictions and the reopening of the country to tourists. The government also implemented several measures aimed at supporting companies and employees working in the tourism sector thereby mitigating the effects of the pandemic. Tourism is a key pillar of Saudi’s transformative Vision 2030 and the country has ambitious goals to ensure that tourism contributes 10% of the country’s GDP by 2030, with one million jobs created along the way.
According to the UNWTO Tourism Barometer, the global tourism sector saw international tourist arrivals almost triple from January to July 2022 (+172%) compared to the same period of 2021. This means the sector recovered to almost 60% of pre-pandemic levels. Ahmed Al Khateeb, Minister of Tourism of Saudi Arabia, and Chairman of the Board of Saudi Tourism Authority said: “Recognition of Saudi’s achievements in the UNWTO Tourism Barometer is a key milestone in our extraordinary recovery and much of the success lies in our leadership’s multipronged approach to managing the pandemic and accelerating the sector’s pace of recovery. “Saudi opened to the world in September 2019 and through continued leadership and commitment, we have made incomparable progress toward realizing our ambitious Vision 2030 tourism goals. We are invested in a sustainable future for tourism, and today I am proud of Saudi’s position as the fastest growing tourism destination in the G20.”
In 2020, Saudi Arabia’s G20 leadership shaped strategies for recovery to foster a more sustainable and resilient sector, and today, Saudi Arabia has outperformed the G20 countries in pre-pandemic tourism recovery. A core pillar of Saudi’s transformative Vision 2030, an ambitious roadmap for the future, building a resilient tourism ecosystem is fundamental to the Kingdom’s economic diversification strategy, with people at its core. In line with the National Tourism Strategy, Saudi has ambitious goals to ensure that tourism contributes 10% of the country’s GDP by 2030, with one million jobs created along the way.
06/10/2022
Fall in Saudi Unemployment Rate
The unemployment rate for Saudis has decreased to 9.7% in the second quarter of 2022, a drop of 0.4 percentage points (pp) compared to the first quarter of 2022, according to data released by the General Authority for Statistics. This comes as the labor force participation rate of Saudis increased by 1.7 pp) to reach 51.8%, and the employment-to-population ratio of Saudis increased by 1.7 pp, reaching 46.8% compared to the last year, the GASTAT report added.
The unemployment rate among Saudi males too decreased to reach 4.7% , dropping down by 0.3 pp from the first quarter of 2022. “The decrease in the unemployment rate of Saudi males this quarter coincided with both an expansion of labor market participation and employment growth, where the participation rate went up by 1.5 pp to 67.5% and the employment-to-population ratio increased by 1.6 pp reaching 64.3%,” GASTAT said in the report.
In the second quarter of 2022, the unemployment rate of the Saudi Arabian total population was recorded at 5.8%, a drop of 0.2 pp compared to the first quarter of 2021, and down 0.8 pp compared to the second quarter of 2021.
06/10/2022
Saudi Digital Transformation Strategy Enters Final Phase
As worldwide business leaders integrate automation and digitalization into their strategies, the Kingdom has been calling for local initiatives to drive digital transformation into its economy. Since 2006 Saudi Arabia has had an established plan for digitization, called to the National Strategy for Digital Transformation. As the world swiftly adopted digital strategies after the pandemic put in place a huge need for physical interaction alternatives, Saudi Arabia itself was able to quickly establish a framework for digital transformation in sectors including finance, commerce, logistics and information technology.
The action plan was divided into three phases. It is currently in its final stage, the Smart Government Strategy, which aims to create a new seamless government experience for beneficiaries by 2024. In line with the action plan, several government authorities have established regulatory sandboxes using digital technologies to allow businesses and startups to experiment in a controlled environment. A sandbox is a testing environment in a computer system in which new or untested software or coding can be run securely.
One of the most active sandboxes is at the Saudi Central Bank, also known as SAMA, which aims to boost the financial sector and transform it into a smart financial hub. SAMA has admitted 38 companies into its sandbox while providing licenses to several businesses that use financial technology in their operations. The Communication and Information Technology Commission provides a sandbox for delivery applications, and the Digital Government Authority enhances organizational solutions in digital platforms and services.
The Kingdom has also encouraged using artificial intelligence to achieve Vision 2030 and Smart Government Strategy objectives. The strategy is expected to set Saudi Arabia’s AI market to touch US$135.2 billion by 2030, which is estimated to contribute 12.4% to the Kingdom’s gross domestic product. Saudi Arabia also intends to transform its workforce by educating and establishing a reservoir of 20,000 AI and data qualified experts, of which 5,000 will be given deep expertise and highly certified. The Global AI Summit held in Riyadh on Sept. 13 has been another significant leap into the evolution of the sector, with global leaders partnering with several Saudi-based companies. The event witnessed the launch of Aramco’s Global AI Corridor project that aims to build and commercialize the AI ecosystem in the Kingdom, in addition to over 40 agreements and partnerships in the public and private sectors.
06/10/2022
Dubai Multi Commodities Center Wins Award
Dubai Multi Commodities Center has been named the Global Free Zone of the Year 2022 by the Financial Times specialist editorial team and independent judges. It is the eighth consecutive year that the Financial Times fDi Magazine has recognized Dubai’s authority on commodities trade and enterprise, the statement added.
Award winners are selected based on a comprehensive set of criteria and a review of the free zones’ ecosystems. Criteria used in making judgments this year included the effectiveness of each free zone’s ecosystems, business and marketing strategies, infrastructure improvements, and COVID-19 response, the statement said.
This year, the DMCC won several awards, including Large Tenant Free Zone of the Year — Global; Large Tenant Free Zone of the Year — Middle East; Middle East Free Zone of the Year; Middle East SME Free Zone of the Year; Global Excellence Award for Environmental, Social, and Governance Practices; and Global Excellence Award for Infrastructure Development.
Executive Chairman and CEO of DMCC Ahmed Bin Sulayem said: “Since DMCC was established in 2002, we have had two core goals – create a global gateway for trade, and comprehensively enhance the ease of doing business for our member companies.”
06/10/2022
Iraq Maintains Oil Export Volume for September
Iraq's Ministry of Oil has announced preliminary oil exports for September of 98,765,153 barrels, giving an average for the month of 3.292 million barrels per day (bpd), slightly up from the 3.286 million bpd exported in August. The exports from the oilfields in central and southern Iraq amounted to approximately 96,445,421 barrels, while exports from the Kirkuk fields through the port of Ceyhan amounted to 2,169,180 barrels.
While not explicitly stated by the Ministry, these figures seem to imply that exports by road to Jordan totalled 150,552 barrels for the month. Revenues for the month were US$8.773 billion, falling below US$9 billion for the first time since February. The average price was US$88.83 per barrel.
06/10/2022
Baker Hughes to Boost Gas Output at Iraqi Field
US-based Baker Hughes has reportedly signed a contract with state-owned Dhi Qar Oil Company (DQOC) to increase production of associated gas at the Nasiriyah Oil Field and Gharraf Oil Field.
Anwar Hadi Shiaa, a director of the DQOC, told the state-controlled Iraqi News Agency that the company aims to increase the gas production from 20 Mscf to 200 Mscf at the two oilfields "in the coming period." He added that a contract has been made with Baker Hughes, in cooperation with the South Gas Company (SGC), which will lead to an 80% increase in production.
06/10/2022
Increase in Iran’s Five-Month Aluminum Production
Iran saw its aluminum output increase by 25% in the five months to August 22, a new sign that government efforts to boost activity in the Iranian metals and mining sector have paid off.
The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) said in a report that aluminum output in the country had reached a total of 270,000 tons over the April-August period, Press TV reported. Largest aluminum smelter SALCO was responsible for 117,475 tons or nearly 47% of Iran’s aluminum output in the five months to late August, followed by IRALCO and Almahdi at nearly 74,841 tons and 63,625 tons, respectively, showed IMIDRO figures. The figures showed that Iran’s production of alumina powder, a key ingredient in aluminum production process, had reached 98,169 tons in April-March, up 2% against the same period last year, said IMIDRO, adding that bauxite production had reached 218,067 tons he same period.
Iran’s aluminum production jumped in 2020 with the inauguration of SALCO, a massive plant in the southern Iranian province of Fars, which cost IMIDRO and private investors some US$1.2 billion to build. The project was part of a larger plan by the Iranian government to diversify the country’s economy away from crude oil revenues. Experts say such plans have paid off as Iran has reported successive periods of growth in its metals and mining sector since oil exports came under American sanctions in 2018. Launching new metals factories and mines has also enabled Iran to create tens of thousands of permanent jobs for its youth population. - Iran Daily
06/10/2022
Report on Investment in Iran's Free Zones
As announced by the vice secretary of Iran’s Free Zones High Council, over IRR 320 trillion (~US$969.6 million) of investment has been made in the country’s free zones in the course of one year from the seventh calendar month of Mehr in the past Iranian year to the same month in this year (September 23, 2021-Septemebr 22, 2022).
Ahmad Jamali said that the performance of free trade and special economic zones should be evaluated in relation to the past trend, goals and regional competitors, while a specific time frame should also be considered for it.
Also, the secretary of Free Zones High Council had previously announced that IRR 360 trillion (~US$1.09 billion) of investment has been made in the country’s free zones in the past Iranian calendar year 1400 (ended on March 20).
Saeed Mohammad also announced that IRR 60 trillion (~US$181.1 million) of investment was made in the free zones during the first quarter of the current Iranian year (March 21-June 21).
He said 2,500 industrial units are currently active in the free zones of the country.
Establishment of free trade zones (FTZs) in Iran dates back to Iranian calendar year 1368 (March 1989 - March 1990) following the fall in the country’s oil income in the preceding year which prompted the government to promote the non-oil exports.
The first two free trade zones of Iran were established in the south of country. The first one was Kish Free Trade Zone established in 1368 on Kish Island in the Persian Gulf and the second one was Qeshm Free Trade Zone established the year after on Qeshm Island in the Strait of Hormuz.
Some five other free trade zones have been also established in the country since then, including Chabahar in southeastern Sistan-Baluchestan Province, Arvand in southwestern Khuzestan Province, Anzali in northern Gilan Province, Aras in East-Azarbaijan Province and Maku in West-Azarbaijan Province, both in the northwest of the country. Development of existing free trade zones and establishment of new FTZs has become one of the major economic approaches of Iranian government. - Tehran Times
06/10/2022
FAO: Iran 14th Largest Producer of Wheat Worldwide
According to the statistics of Food and Agriculture Organization (FAO), Islamic Republic of Iran has become the world’s 14th producer of wheat in 2022. Iran’s grain production in 2022 has reached 20.3 million tons, registering a 13.5% growth, FAO said adding that the Islamic Republic of Iran has become the 14th largest producer of wheat in the world.
According to the report, Iran’s grain production increased from 17.9 million tons in 2021 to 20.3 million tons in 2022, recording 2.4 million tons increase this year. The 13.5% growth of Iran’s grain production in 2022 came as FAO has predicted a 1.4% reduction of grains in the world in 2022. FAO also put Iran’s wheat production in the current year at 13 million tons. The Islamic Republic of Iran produced 10.4 million tons of wheat last year (2021), the official figures said, while the country's wheat production surpassed 2.6 million tons in the current year in weight. - Mehr
06/10/2022
Iran Technology Day to be Held in GITEX 2022
On the third day of the [Persian] Gulf Information Technology Exhibition (GITEX 2022), a conference titled “Iran Technology Day” will be held. It is expected that the exhibition will be hosting more than 4,000 exhibitors, 800 startups, 1,000 speakers and scientific personalities, 200 government institutions, and 400 investors from 170 countries. More than 100,000 people are expected to visit the GITEX 2022 which will be held from October 10 to 14. The participants can benefit from the special facilities of the Iran Business Center to launch businesses and hold B2B meetings. This year, on the third day of the GITEX exhibition, a big conference titled "Iran Technology Day" will be held. The participants can benefit from the special facilities of the Iran Business Center in the United Arab Emirates to launch businesses and hold B2B meetings. In addition to introducing your products to foreign visitors, networking with Iranian and foreign partners, and getting to know foreign competitors. GITEX GLOBAL is one of the world’s most influential meeting places for the technology industry; bringing together thought-leaders, creators, innovators, and makers to discuss, debate, and challenge new ideologies, showcase new products and identify future opportunities. Launched in 1981, It takes place annually in Dubai, the United Arab Emirates at the Dubai World Trade Center.
Technological development
Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei designated the current Iranian year as “The Year of Production: Knowledge-Based and Job-Creating”. Strengthening knowledge-based companies is on the agenda, raising hope for reducing obstacles on the path to development. The Leader has called on all Iranians, including citizens and government officials, to work hard to boost knowledge-based production and create new jobs. Today, the country's knowledge-based ecosystem accounts for more than 3% of GDP. And the figure is projected to reach 5%, however, the main goal is to step toward a 10% share in GDP, Vice President for Science and Technology, Sourena Sattari told Fars on February 13. The share of knowledge-based companies in the country's economy has exceeded IRR 9 quadrillion (US$34 billion), and since 2019, it has experienced a growth of more than 450%, he stated. There are currently 6,263 knowledge-based companies operating in the country, offering advanced products and services in various fields of technology to domestic and foreign markets, and some of them have entered international markets, Siavash Maleki, deputy head of the Fund, stated. The fields of aircraft maintenance, steel, pharmaceuticals, medical equipment, oil, and gas are among the sectors that researchers in technology companies have engaged in, leading to import reduction. - Tehran Times
06/10/2022
FIFA World Cup 2022 to Make Qatar Epicenter of Tourism, Business
FIFA World Cup Qatar 2022 will showcase the country’s infrastructure to the world and will put Qatar on the global map to become the epicenter of tourism and the business hub, said an official during an online event, recently. Commercial Bank in association with Euromoney organized a virtual event entitled ‘Qatar: Outlook and Opportunities Before and After FIFA World Cup Qatar 2022’ which shed light on Qatar’s macro-outlook – gas, tourism, finance, investment; what FIFA World Cup 2022 will mean for Qatar – economy, image, investment; and the legacy of World Cup 2022 – post event strategy and opportunity. Richard Banks, Senior Adviser, Euromoney moderated the event. Dr Leonie Lethbridge, EGM, Chief Operating Officer at Commercial Bank said: “In terms of the World Cup it is a culmination of 12 years of activity since the bid was won in 2010 and more than US$200 billion has been spent on the infrastructure. The independent assessments would say that the infrastructure is world class that has created huge benefits for the economy in terms of ability to diversify and in underpinning long term sustainable growth. Also, this year there has been immediate hike in terms of benefits across many sectors such as financial services, real estate, and tourism. I think the multiplier effect across multiple sectors of the economy is very powerful. “Qatar’s economy is very well managed which also manifested during the peak of COVID-19 when the country remained open which was remarkable. The supply chain disruptions that other countries faced were not experienced here. The growth is quite strong and projected to remain strong,” she added.
Speaking about the real estate market and its development, Basil Bachos, Residential Sales Director for United Development Company (UDC) noted that Qatar has a very strong local economy in regard to expansion, and oil and gas. “We in UDC being one of the leading development companies are specialized in the premium properties and we have seen that this has been extremely stable irrespective of all the challenges. The real estate has proven to be very effective, and the effect of FIFA has been direct on real estate. Based on our numbers we have reached an all-high occupancy rate this year, we are currently at 96% occupancy. It is the year of leasing; sales have been going in a very smooth way, but we can see the big influx”. Responding to a query about what will be the economic and the strategic legacy of the World Cup and its lasting impact, Bachos said that Qatar has taken very clear approach before the World Cup and has focused a lot on human development. “The way we see real estate is currently there have been several approaches by the government that supports the real estate sector and by developers like ourselves. We are transforming from an infrastructure development which will put Qatar on the global map, and it will become a tourist and a business hub,” he added.
He also reiterated that hosting the World Cup gives Qatar the stand to be recognized globally and the legacy that it will leave behind for Qatar is to become the epicenter of tourism and business post-World Cup. “FIFA will be the best way to showcase the infrastructure to the world and this will attract a lot of people about what the country has to offer. In terms of the investment, Qatar is one of the safest places in the world. We are expecting to see a lot of the FDIs coming in through the government initiatives,” Bachos added. Akber Khan, Senior Director, Asset Management for Al Rayan Investment said: “Qatar is the largest exporter of LNG in the world and as a result of the surge in energy prices, the region and Qatar had a big boost. Year to date, Qatar’s stock markets have been strongly positive. From a fiscal point of view the country is generating massive surpluses on a monthly basis”. Speaking about the legacy and the non-energy areas that are going to be opportunities in coming years and impact of the North Field Expansion, Khan noted that the most tangible legacy is the number of different areas of infrastructure in transport, power generation, sewage, desalination, telecommunications, and the 5G rollout.
06/10/2022